NEW FRANC RATE

Evening Star, Issue 25676, 27 December 1945, Page 4

NEW FRANC RATE

MEDIATE ADVANTAGES ' PROFIT ON GOLD STOCK PARIS, Dec. 25. It is officially announced that the French franc has been devaluated to a new rate of 480 to the pound sterling, and 119.6 to the dollar. The old franc rate after the liberation of France was 200 to the pound sterling and 50 to the dollar. Domestically, the devaluation of. the franc is regarded merely as offioial recognition of what is already an established Jact, says Reuter’s Paris correspondent. Official circles hope that the devaluation will not be followed by further rises in internal prices. Whether this hope will, be fulfilled remains to be seen. It is ; essentially a question of a general French ecoridraio recovery. . , , Official circles in Pans saw the devaluation as an essential tfiuniph: for the gold standard, which Russia.and America have vigorously, defended. It was asserted in Paris that Britain’s adherence to the Bretton Woods Agreement meant that Britain was returning to the gold standard. The immediate advantage of devaluation for France will be a profit for the Government on the revaluation of the Bank of France’s gold stock. This will give the French Treasury a nest egg to cover expenditure for three months or more. The public debt will be lightened, and exports will not only be cheaper, but will be made possible for the first time since France’* liberation. . ,